Singapore Exchange (SGX) has reported that its FY2019 net profit of S$391.1 million (S$363.2 million) has reached its highest net profit in 11 years.
It says revenues were also the highest since listing at S$909.8 million (S$844.7 million).
Operating profit increased to S$461.0 million (S$424.9 million), with earnings per share at 36.5 cents (33.9 cents). The Board of Directors has proposed a final dividend of 7.5 cents (15 cents) per share, payable on 18 October 2019. This brings the total dividend for the year to 30 cents (30 cents) per share.
Loh Boon Chye, Chief Executive Officer of SGX, said, “We continued the strong momentum from previous quarters and closed FY2019 with another record performance, reflecting the combined strengths of our multi-asset businesses. “
“We set all-time records in our derivatives volumes and open interest, driven by strong global institutional demand for Asian risk management and investment solutions. The second half of the year also saw an improvement in our securities business as trading activity picked up.”
Mr Loh added, “The macro trends we anticipated, such as Asia being at the forefront of economic growth, the internationalisation of Asian markets as well as the increasing convergence of OTC and listed markets, continue to support our business growth.”
From FY2020, SGX has reorganised into four business and client units – Fixed Income, Currencies and Commodities; Equities; Data, Connectivity and Indices; and Global Sales and Origination.
This will sharpen its focus on building scale, enabling us to not only capture the opportunities across multiple asset classes but also serve its clients’ needs more holistically.”
In its results summary, equities and fixed income revenue – comprising Issuer Services, Securities Trading & Clearing and Post Trade Services – declined 15% to S$347.5 million (S$406.6 million), accounting for 38% (48%) of total revenue.
Issuer Services revenue decreased 7% to S$79.7 million (S$86.2 million), contributing to 9% (10%) of total revenue.
Securities Trading and Clearing revenue decreased 18% to S$182.1 million (S$221.1 million) and accounted for 20% (26%) of total revenue.
Post Trade Services revenue declined 14% to S$85.7 million (S$99.3 million), accounting for 9% (12%) of total revenue.
Market Data and Connectivity revenue increased 4% to S$102.5 million (S$98.3 million), accounting for 11% (12%) of total revenue.
Expenses increased by 7% to S$448.8 million (S$419.8 million) mainly due to higher staff costs as we expanded our technology capabilities and grew our international presence. Our average headcount for the year was 820 (792).
Technology-related capital expenditure was S$54.6 million (S$65.1 million). These investments were mainly for the enhancement of our fixed income trading platform, upgrade of our securities trading engine, and development of our new securities post-trade system.
For FY2020, SGX’s full-year operating expenses are projected to be between S$465 million and S$475 million, and technology-related capital expenditure to be between S$45 million and S$50 million.